<p>What reasons do you all think that it would be worth it to take on some debt?? Pretty open ended on purpose...I am curious to what your thoughts are!</p>
<p>See <a href=“Money Isn't Everything: When It's Worth Taking On $50,000 Or More In Student Debt”>http://www.forbes.com/sites/maggiemcgrath/2014/04/04/money-isnt-everything-when-its-worth-taking-on-50000-or-more-in-student-debt/</a>
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<p>How much debt are you talking about? </p>
<p>In my opinion, anything in excess of the Direct loans is too much debt.</p>
<p>If you are talking about debt in excess of federal loans…</p>
<p>There have a been a couple of cases here on CC where a senior in college needs extra money to finish his education. At that point, taking out add’l loans is the lesser of two evils. The student needs to graduate so he can become well-employed to pay off his federal loans. He cant easily finish somewhere cheaper because a new school may require an additional year. So, a private loan can be the solution, even if it is not desirable.</p>
<p>All of these are really good points and interesting too. What are your thoughts about taking out federal loans only, not any private loans?</p>
<p>The maximum Direct Loan (which is the federal loan for students) is $6500 for a sophomore, $7500 for junior, and $7500 for senior. In my opinion, if that is ALL you take out in loans, that is reasonable. Those loans are in YOUR (the student) name…not your parents.</p>
<p>But you are proposing to transfer to two schools that are over $50,000 per year on costs. How will you pay those costs?</p>
<p>I will pay for those costs (approx 120-125K) from my parents college savings fund. The rest would be what would come from loans…the loans that would be 6500, 7500, and 7500 again. I think I misread something earlier, so my apologies. But thank you for your help.</p>
<p>@trying2leave Did you get any merit aid from your school?</p>
<p>What I told my own kids: Do the basic math. Compare the starting salary of a graduate in your major of choice at the school with zero debt to the starting salary of the same major a school with debt. Using only the difference in pay, how long would it take to pay off the debt. Assume 4% interest annually after college is completed for this exercise. There is no right answer, but you will likely be surprised by how little difference there is between a graduate at a ‘top’ school and a graduate at a ‘2nd or 3rd tier school’. In many cases, the ‘break-even’ point was 30-40 years down the road and when you compare salaries over the long term, there is even less difference. In most cases, taking on debt is not really worth the money. Mom2collegekids gave you a great exception. </p>
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Wow, you should thank your parents for the college fund. Also, make sure your parents get some tax benefits if they qualify.</p>
<p>@Torveaux I do have some merit money too. I am going to work at school and 35ish hours per week this summer. For me, the reputation does not matter as much as the good fit factor for me. I just don’t know if college A (rollins) is going to be a good fit. Additionally, my parents said they will plan on helping me pay off the loans or not necessarily taking them out further along the road, providing the $$ improves.</p>
<p>@4kidsdad I am very thankful for my parents college fund. They are both self made and have always placed importance on a strong college education. I am sure they will reap the benefits with their taxes. Luckily, I would only take the subsidized federal loans and have calculated that I can pay them off in 5 years @$230-250 monthly. </p>
<p>with that much in a college fund, if you have good stats, you should be able to manage w/o any debt at all.</p>
<p>what are your stats? what is your major/ career goal</p>
<p>I think that it is subjective. My daughter had generous scholarships, but took out some loan money so that she could do extra things like mission trips during spring break (Catholic College) and trips to Italy with her church history class and Spain with her Spanish class. I was not happy about that, but since she did not need a co-signer for the loans (had medical career loans) it was ultimately her decision. She isn’t happy about paying loans, but said she’d do it again - for her it was worth it to see the (every ten year) Passion Play in Germany during the Italy trip and to build that school in Guatemala. </p>
<p>My stats: 3.7 GPA college…approximately the same in HS. 29 ACT, etc. My career goal is wealth management in finance! Have chosen, GW, and will actually not need to take on loans, just pay 4000 per year from working!</p>